Eligibility Criteria and Documentations necessary for applying for car loan

It has been of vital importance to understand the underlying criteria behind the functioning of car loans and the necessary eligibility criteria which states the capability that a person must possess to avail the car loan and the credentials that he must possess so that the private or public commercial banking institutions are satisfied with the fact that the loan amount would be repaid by the borrower within a substantial time-frame when the loan amount is returned to the banking institutions. The documentation necessary for applying for car loans has also assumed a tremendous amount of significance in the functioning of the car loan process and therefore helps in understanding the functioning procedure of car loans. Following are thus the eligibility criteria and the documentation necessary for availing of car loans-

Applicants must have a minimum fixed salary of 15,000- The first and most important eligibility criteria for availing a car loan is that the borrower who is demanding the loan from the requisite banking institutions which are providing the loan should have a subsistence income level of 15,000. The amount is sufficient for paying off the requisite amount of loan from the banking institution and also helps in maintaining uniformity in banking transactions, therefore helping in revenue generation procedure. For example- if the borrower does not possess a minimum income level of 15,000 he would be unable to pay the interest amount for the loan taken by the borrower. City Union Bank car loan interest rate is very minimum and affordable to the customers.

Submission of Documents regarding personal and income details- The submission of requisite documents is considered to be one of the most important steps and procedures in the application process of car loans. Firstly, the borrower needs to submit documents about the personal identification details like Aadhar Card, Voter Card, and PAN Card. Filling up the necessary columns in the application form is important as it helps in fulfilling the primary criteria of loan growth in the economic environment thereby helping the borrower grow and expand. After the personal details are filled up, the income details of the borrower are necessary. This can be sufficed when the borrower clears off the income statement which talks about the monthly income of the borrower, his past employment records, and the specifications associated with the functioning of the car loan procedure. The employment details must also be attached along with the application form so that the banks can evaluate the exact quantum of the loan amount which would be feasible for the borrowers to pay off and would thereby help in generating liquidity in the process. Thus the loan facility, especially in the form of personal loans and car loans has been instrumental in accelerating the growth condition in the economy and initiating the process of economic recovery.

Read guidelines and instructions thoroughly- Banking institutions issue circulars and orders regularly to change the notifications and the processes associated with the functioning of the car loans. At times owing to the inconsistent behavior and ignorance of the consumer they do not follow the requisite guidelines, rules, and regulations and thus omit important details associated with the functioning of the process of the loan. Thus while filling up the application form, one must give a thorough reading of the rules and regulations because they contain important information about the development of the loan criteria and also helps in understanding the loan process in detail.

Conclusion

Thus the aforementioned factors are important to understand the functioning of the car loan process so that the beneficiaries of the loan can obtain maximum satisfaction. If you have any doubts regarding car loans, drop us your queries in the comment section.

Gaurav S. Khurana is the Founder and CEO of Dialabank and has had a great career in the Banking and Financial Services Sector. He has an experience of 18 years in the sector and has worked at Senior Roles.